So you guys are saying one union decides to strike and within two days, the company needs to file bankruptcy? Interesting!
The commonly sold story by many media outlets (i.e. Fox News) is that Hostess went bankrupt because of a greedy and stubborn union which increased the company's labor costs beyond all reason. However, a deeper investigation of the facts shows that Hostess failed for a variety of reasons, many of them unrelated to unions.
Many of the consumers rushing to buy Twinkies now have not bought Hostess products in many years, which tells you all you need to know about the company’s struggles.
Hostess mysteriously tripled the pay of their CEO just months before asking union members to take a pay cut to “save the company.” One could understand how union members found it hard to believe the company was strapped for cash after raising the CEO’s salary from approximately $750,000 to $2,555,000. Nine other executives at the company also received massive pay raises earlier this year, which now appear to be part of a “golden parachute” package.
It still sounds like bad management to me...